Application for Stay of Demand — Template

TEMPLATE — APPLICATION FOR STAY OF DEMAND (Section 220(6))

Name of Assessee   : [Name of Assessee]
PAN                : [ABCDE1234F]
Assessment Year    : [A.Y. 20__-__]
Order & Demand     : Order u/s [143(3)/147] dated [DD/MM/YYYY];
                     demand u/s 156 of ₹[amount] due by [DD/MM/YYYY]
Appeal             : Form 35 filed [DD/MM/YYYY], Appeal No. [___] — pending
Date               : [DD/MM/YYYY]

To,
The Assessing Officer, [Ward/Circle __] /
The Principal Commissioner of Income-tax, [___].

Subject: Stay of recovery of demand of ₹[amount] for A.Y. [20__-__]
         pending first appeal — treating the assessee as not in default
         u/s 220(6) — reg.

Respected Sir/Madam,

1.  A demand of ₹[amount] was raised u/s 156 pursuant to the order dated
    [DD/MM/YYYY] on account of [addition/disallowance of ₹[amount] u/s
    [___]].

2.  Aggrieved, the assessee has filed an appeal in Form 35 on [DD/MM/YYYY]
    (Appeal No. [___]) before the CIT(A)/NFAC, which is pending.

3.  In terms of CBDT O.M. dated 31.07.2017, on payment of 20% of the
    disputed demand recovery of the balance is to be stayed. The assessee
    has paid ₹[amount] (20%) vide challan CIN [___] dated [DD/MM/YYYY].

4.  The three tests for stay are met:
    (i)  Prima facie case — the addition is contrary to record and law;
    (ii) Balance of convenience — favours the assessee, demand being sub
         judice;
    (iii)Irreparable hardship — coercive recovery would cause severe
         financial hardship / cripple the business (financials enclosed).

5.  The assessee undertakes to co-operate for early disposal of the appeal
    and not to defeat recovery.

It is prayed that the assessee be treated as "not in default" u/s 220(6)
and recovery of the balance demand of ₹[amount] be stayed till disposal of
the appeal, and no coercive action u/s 226 be taken.

Enclosures: Assessment order & demand notice; Form 35; 20% payment challan;
latest financials.

Yours faithfully,
For [Name of Assessee]

______________________________
[Signature — Assessee / Authorised Representative]
Name: [Name]   PAN: [ABCDE1234F]
Place: [City]  Date: [DD/MM/YYYY]